The Journal. A Wall Street Legend and His Penthouse Sex Dungeon
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Jan 29, 2026 
Erich Schwartzel, an investigative reporter at The Wall Street Journal, unravels the Howard Rubin saga with crisp reporting. He walks through Rubin’s Wall Street rise, a lavish Metropolitan Tower penthouse, allegations of a secret sex trafficking operation, the recruitment and alleged abuse of vulnerable women, and the long legal fight that followed.
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Gambler Mentality Fueled Trading Fame
- Rubin carried a gambler mentality from his card-counting days into trading, taking huge risks that often paid off.
- Erich Schwartzel links that risk-taking persona to his rise as a star trader on Wall Street in the 1980s.
The $250 Million Trade That Backfired
- In April 1987 Rubin bought a massive position in mortgage securities that became a $250 million loss when mortgages fell.
- Erich Schwartzel notes the loss was publicly announced by Merrill Lynch and was once seen as the largest single-trade loss.
Failure Didn't End His Wall Street Career
- Despite the giant loss and SEC settlement, Rubin quickly returned to trading and was hired by Bear Stearns before year-end.
- Erich Schwartzel highlights Wall Street's appetite for talent even after public failures.
